Surprise Jump for Jobless Claims

US Department of Labor (DoL) data show a 19,000 increase
from a revised 407,000 to 426,000 for the week ending
September 7 – the largest number of people applying for
jobless benefits since the 427,000 level seen April 20.

This follows an 8,000-claim dip for the week ending
August 31 to 403,000 from a revised figure of 411,000 the
previous week — the first decrease since the first week of
August.

The four-week moving average, considered a more reliable
measure of labor conditions because it irons out short-term
fluctuations, rose to 409,500 last week, the government
said.

Thursday’s jobless figures took economists by surprise.
Economists polled by Reuters had been calling for a small
drop to 401,000.

But the DoL said that seasonal factors, with the
shortened Labor Day holiday work week, could account for
volatility in the latest figures.

In a measure of how long it is taking people to find new
jobs, the number of workers remaining on state jobless aid
rose by 38,000 to 3.6 million, for the week ended August
31, the latest week for which the data were available.

The government also recently reported that the US
unemployment rate dipped to a five-month low in August.